U.S. Department of Justice
United States Attorney
Northern District of California
11th Floor, Federal Building
450 Golden Gate Avenue, Box 36055
San Francisco, California 94102
FOR IMMEDIATE RELEASE
Tel: (415) 436-7200
Fax: (415) 436-7234
August 21, 2002
The United States Attorney's Office for the Northern District of California announced that Fred S. Pang was convicted by a federal jury today of five counts of Unlawful Structuring of Currency Transactions in violation of 31 U.S.C. 5324(a); four counts of Tax Evasion in violation of 26 U.S.C. 7201; and four counts of Filing a False Tax Return in violation of 26 U.S.C. 7206(1). The conviction followed a six-day jury trial before U.S. District Court Judge Phyllis Hamilton.
Mr Pang, 58, of Hillsborough, California, was charged by the United States Attorney in a criminal information on September 10, 2001. He was charged with structuring a series of transactions with Bank of Canton in San Francisco, by making cash deposits in amounts less than $10,000, representing a portion of his customers' cash payments of $20,000 or more. He was also charged with willfully attempting to evade income tax due and owing by him by signing and filing false and fraudulent joint U.S. Individual Income Tax Returns, Form 1040s, which were filed with the Internal Revenue Service, stating an amount of tax was due to the United States when he knew his joint taxable income was substantially in excess of that stated on his 1994, 1995, 1996, and 1997 tax returns and that substantial additional tax was due for each of those years.
The defendant was also charged with filing willfully and knowingly making and subscribing joint U.S. Individual Income Tax Returns for the 1994, 1995, 1996, and 1997 years, which were filed with the Internal Revenue Service and verified by the defendant in written declarations that they were made under the penalties of perjury. The jury, after deliberating an hour and a half, found the defendant guilty on all counts.
The maximum statutory penalty for each count in violation of 31 U.S.C. §5324 is five years in prison and a fine of $250,000. The maximum statutory penalty for each count in violation of 26 U.S.C. §7201 is five years in prison and a fine of $250,000. The maximum statutory penalty for each count in violation of 26 U.S.C. §7206 is three years in prison and a fine of $250,000.
However, the actual sentence will be dictated by the Federal Sentencing Guidelines, which take into account a number of factors, and will be imposed in the discretion of he Court. The sentencing of Mr.Pang is scheduled for November 27, 2002 before Judge Phyllis Hamilton in San Francisco.
The conviction is the result of a two-year investigation by the Criminal Investigation Division of the Internal Revenue Service. Thomas Moore is the Assistant U.S. Attorney who prosecuted the case with the assistance of Kathy Tat.
A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can. Related court documents and information may be found on the District Court website at www.cand.uscourts.gov or on http://pacer.cand.uscourts.gov.
All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415)436-7181.